Offshoring Model: Partner / Joint Venture

In a joint venture (JV), also known as alliance or partnership an organization ties up with a local firm or company either by taking an equity stake or forming an independent company in which each company contributes resources. The goal is generally to work towards a "win-win" deal where both organizations hope to benefit from the other's strengths. By capitalizing on the strengths of a local player, the client organization can mitigate some of the risks of internalization; similarly, the local player can benefit from partnering with a strong player and the opportunity to scale up the value chain. Often the venture requires vertical or industry expertise and reach on the part of one partner and technical capabilities on the part of the other partner.

Small businesses today cannot afford to ignore the rewards of joint venturing. Here are some benefits that you are likely to reap when establishing a JV.

# Shorten your learning curve : Building knowledge to expand into key markets, develop new products, and improve productivity. Small businesses gain lead-time, share expertise, and lower costs by forming joint ventures.

# Enhance company credibility : All businesses especially start-ups struggle with building acceptance within their market and customer base. A key alliance with a larger known branded company can dramatically improve your credibility in the eyes of your customers.

# Create & develop new markets : Your business has limited resources and capital for growth. By formulating a joint venture with a solid partner, your company expands its sales force and distribution channel for low cost.

# Build competitor barriers : A strategic alliance with several key players can erect impenetrable walls, keeping out competitors and maintaining high profit margins. Once these ties are in place, it is difficult for competitors to unravel these relationships.

We assist companies to structure the joint venture, identify potential partners, prepare the appropriate submissions and negotiate the joint venture and partnership terms with the partner(s).